Interim statements:
A) Are always required under GAAP.
B) Are always necessary to achieve full disclosure about a business's operations.
C) Are usually monthly or quarterly statements prepared for periods of less than one year.
D) Require the use of the perpetual method for inventories.
E) Cannot be prepared if the company follows the conservatism principle.

Question

Quizplus · Accepted Answer

Interim statements are usually prepared for periods of less than one year, such as monthly or quarterly statements. These statements are not always required under GAAP and do not necessarily require the use of the perpetual method for inventories. However, they are necessary for full disclosure about a business's operations as they provide updates on financial performance and position throughout the year. The conservatism principle does not prevent the preparation of interim statements.

Interim Statements